LAN upgraded by Deutsche Bank, US airlines stocks mixed
LAN Airlines was upgraded from “hold” to “buy” by Deutsche Bank last week and raised their target price from USD30 to USD40 per shares. The company announced a USD3.7 billion merger with TAM in Aug-2010, although the merger still needs approval from Brazilian and Chilean authorities.
In the US, airline stocks were mixed, with Delta Airlines and Southwest gaining 1.1% and Allegiant and American Airlines also up. Shares in JetBlue fell 1.3%, while Republic Airways was down 1.2%. US benchmark West Texas Intermediate crude oil prices finished Friday above USD90 per barrel, raising concerns about the vulnerability of the sector to oil price changes.
Selected North American airlines daily share price movements (% change): 14-Jan-2011